IBUS 462 Lecture Notes - Lecture 9: Switching Barriers, Experience Curve Effects, Jollibee
5 Dec 2018
School
Department
Course
Professor
Document Summary
Managers can increase the profitability of the firm by pursuing strategies that lower costs or by pursuing strategies that add value to the firm"s products, which enables the firm to raise prices. Expanding internationally can boost profitability and profit growth: basic international strategy decisions: optimization of the global. Involve responding to : pressures for cost reductions : differences in product, presence of low cost. Competitors and other members of value delivery network: pressures for local responsiveness : differences in customer tastes, There are four basic strategies to compete in the international environment: choosing a strategy, global standardization, localization, transnational, international. The appropriateness of each strategy depends on the pressures for cost reduction and local responsiveness in the industry. Favorable markets are politically stable developed and developing nations with free market systems and relatively low inflation rates and private sector debt. And where the product or service is not widely available and satisfies an unmet need.
